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TSX ends down 0.3% at 22,308.93
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Index touches a record intraday high
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Energy falls 1.2%; oil settles 1.3% lower
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Canadian job gains top forecasts in April
(Updates at market close)
By Fergal Smith
May 10 (Reuters) - Canada's main stock index ended lower
on Friday as oil prices fell and stronger-than-expected jobs
data crimped expectations for Bank of Canada interest rate cuts,
with the index pulling back from an earlier record high.
The Toronto Stock Exchange's S&P/TSX composite index
ended down 66.9 points, or 0.3%, at 22,308.93, after
it touched an intraday record high of 22,470.27.
For the week, the index was up 1.7%, its biggest weekly
advance in nearly five months, as investors cheered rising
corporate profits and grew more hopeful that the Federal Reserve
would cut interest rates this year.
"We are in this mode where good might be better than great
when it comes to the labor market and economic growth data as
investors look at everything through the lens as to what it
means for central banks," said Angelo Kourkafas, a senior
investment strategist at Edward Jones in St. Louis, Missouri.
Canada's economy added five times the number of jobs that
were forecast for April and the unemployment rate unexpectedly
held at 6.1%, dampening market bets for a June rate cut.
Money markets see a 44% chance that the Canadian central
will ease next month, down from nearly 60% before the data.
Investors also weighed U.S. data that showed inflation
expectations moving higher in May.
The energy sector fell 1.2% as the price of oil
settled 1.3% lower at $78.26 a barrel on the prospect of
higher-for-longer U.S. borrowing costs, which could slow demand.
Technology was also a drag, falling 2%, as shares
of e-commerce company Shopify ( SHOP ) ended 5.6% lower.
Sun Life Financial ( SLF ) shares dropped 6.7% after the
life insurer missed core profit estimates for the first time in
12 quarters, while shares of CI Financial Corp ( CIXXF ) tumbled
12.1% after its quarterly results.